Yuriy Ukazkin
The RBA’s recent statement contains a hint at further easing of the bank’s money-and-credit policies, Citi experts assume. They anticipate interest rate cuts during the forthcoming RBA meeting. Concerns over the negative impact of China’s economic slowdown are believed to be the real reason for initiating the discussion of monetary easing.
The currency market reacted almost instantly. The Australian Dollar depreciated versus other major currencies. UBS experts say this is a reversal sing and anticipate a further decline.
According to experts, the Australian Dollar keeps weakening against its US counterpart. The price is currently forming sub-wave А(С)/С Н4 inside the current downswing - wave С. The closest levels of support are 1.0219, 1.0156. The downswing will be completed as soon as the price breaks above 1.0464.
Yuriy Ukazkin
